A trust is a legal obligation that comes into existence when
an individual or other legal entity (known as the settlor) transfers the legal
ownership of assets - which may be of almost any type - to another person
or persons (known as the trustees) to hold not for their own benefit but for
the benefit of the beneficiaries who can be individuals or otherwise. It is
essential that the transfer is gratuitous otherwise the transaction takes
on the characteristics of some other legal entity.
A trust may therefore be defined as an equitable obligation which binds
the trustees to hold and deal with the trust assets for the benefit of
the beneficiaries in accordance with the terms of the trust.
Lutea's primary activity is to act as Trustee of Settlements and to administer
those Settlements.
Lutea can help in the initial establishment or transfer of trusts, including
the drafting of suitable documentation and letters of wishes.
Lutea's administration services include the following:
a) Maintenance of statutory Trustee minutes.
b) Regular monitoring of Trust assets.
c) Maintenance of accounting records.
d) Production of annual accounts. Our aim is to produce them within
3 months of the year end.
e) Optionally, production of accounts on a quarterly basis, usually
1 month after the quarter end.
f) Preparation of Trust tax returns (for UK only).
g) Provision of relevant information to a Settlor or Beneficiary or
his or her adviser for taxation purposes.
h) Regular meetings with the Settlor or Principal Beneficiaries of the
Settlement.
Lutea charges for its administration services on a time basis and not
by reference to the value of the fund.
It prefers wherever possible to agree in writing a fixed fee with the Settlor
or Principal Beneficiaries for its annual administration charge, which
it levies annually in advance on 1 January each year.
Because changes in investment policy or unforeseen occurrences may arise
from time to time which incur greater time costs than anticipated, Lutea
will reserve the right to charge a higher fee if the time costs should
exceed the fixed fee.
This will usually be done after discussion with the principal.
